Natural Gas in Underground Storage

The weekly EIA Natural Gas Storage Report advised that there was a withdrawal of 33Bcf (billion cubic feet) from Underground Storage for the week ending November 24th, 2017.

This is 2Bcf below the median forecast of a 35Bcf withdrawal, the average prediction of sector analysts and traders in the Dow Jones Newswires weekly survey. The withdrawal one year ago was 43Bcf and the 5-year average withdrawal is 37Bcf. Storage is 309Bcf below last year for the same week and 107Bcf below the 5-year average.

Natural Gas Pricing

As of 9:08AM CST, January 2018, (the new prompt month) Natural Gas was trading at $3.07, +$0.10 from one week ago and the 1-Year Spread average was $2.99, +$0.01 from one week ago.

Crude Oil Pricing

As of 9:58AM CST, January, 2018, (the new prompt month) Light, Sweet Crude on the NYMEX was at $57.68, -$0.29 from one week ago.

Crude Oil Inventory

US crude inventories fell by 3.4 million barrels to 453.7 million barrels for the week ended November 24th, according to data released yesterday morning by the US Department of Energy. Traders in the Reuters poll projected a draw of 2.3 million barrels.


U.S. Rotary Rigs

U.S. Rotary Rigs drilling for natural gas were -1 at 176 for the week of November 22th. The number of rigs currently drilling for Natural Gas is 58 higher than last year’s level of 118.  US Rigs drilling for oil were +9 at 747 There are 273 more rigs targeting oil than last year. Canadian rigs were +7 at 215 for the week. Rigs targeting oil remain at 81% of all drilling activity.

Geopolitical

LAS VEGAS, NV—Solutions to the climate crisis are possible, asserts former U.S. Energy Secretary Dr. Ernest Moniz, but the nation needs to make greater investments in energy innovation to implement those solutions and capture the economic payoffs. “The innovation prize is enormous,” Dr. Moniz said recently in a “Fireside Chat” at the October National Clean Energy Summit in Las Vegas, NV. “We’re clearly talking about multitrillion dollar markets in this technology space.”

Weather

The AccuWeather 1-5 day Outlook forecasts above-normal temperatures for over 95% of the country. The 6-10 Day Outlook forecasts most of the Eastern half of the US at above-normal temps with the Western half of the country at mostly below-normal temps. The 11-15 day Outlook forecasts mostly below-normal temps for the majority of the country, with the East Coast and Far West at normal temps. The 30-Day Outlook projects normal temps for the majority of the country with above-normal temps.



Sustainability and Renewables

Solar supercapacitor creates electricity and hydrogen fuel on the cheap: Hydrogen-powered vehicles are slowly
hitting the streets, but although it's a clean and plentiful fuel source, a lack of infrastructure for mass producing, distributing and storing hydrogen is still a major roadblock. But new work out of the University of California, Los Angeles (UCLA) could help lower the barrier to entry for consumers, with a device that uses sunlight to produce
both hydrogen and electricity.


This Week's Key Takeaway

While Crude inventories are down, most of the drop can be attributed to the closure of the Keystone XL pipeline,
which restarted on Tuesday. Once again the U.S. set a weekly record for the highest production since EIA first published in 1983. Oil production was up 24,000 barrels per day at 9.682 million b/d. While it is an estimate it is the greatest threat to OPEC. In response, OPEC agreed today to extend oil production cuts until the end of 2018 as
an attempt to drive prices up.


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